There are many factors that contribute to a decision to declare bankruptcy. Some people can’t control their overwhelming credit card debts. Others can’t afford to pay off their medical bills on time. These problems can force debtors into filing for bankruptcy because creditors often make it difficult for debtors to negotiate settlement plans.
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As a result, debtors who live in Michigan and Pennsylvania should try to learn all they can about their state property exemption laws. There are some important bankruptcy exemption laws that Michigan and Pennsylvania residents can use to protect their personal property.
For example, Michigan residents can use their state’s bankruptcy exemption laws to protect almost any pension plan from their creditors. Michigan residents can also use these laws to protect insurance benefits, and public benefits such as food stamps or SSI payments.
Certain types of property can also be protected in Michigan. For example, residents may exempt up to $1,000 worth of tools that are used in for work.
Michigan residents may also exempt up to $3,500 of the equity in one’s home, and this exemption can be “doubled”. That is to say if spouses are filing for bankruptcy together, they can collectively protect $7,00 of the equity in their home. A local bankruptcy lawyer is the best person to consult to get further details and specific information on the kinds of exemptions allowed in your jurisdiction.
Furthermore, Pennsylvania’s bankruptcy exemption laws also allow residents to protect retirement plans and other financial assets. Most household items and any public assistance benefits are typically exempted.
Pennsylvania’s bankruptcy exemption laws allow residents to exempt as much as $1,750 worth of tools that are used in their trade. These exemptions allow people to protect most of their personal belongings from their creditors. However, Pennsylvania residents may also take advantage of a “wildcard” exemption that allows them to exempt up to $9,325 worth of property that is important to them. There also exists an automobile exemption that can protect up to $2,775 of the value of a vehicle.
As you can see, Michigan and Pennsylvania residents may combine their state exemptions in some instances to protect more of their property. Since these exemptions can vary where you live, ask your local bankruptcy lawyers today for more details on how to combine your state’s bankruptcy personal exemption laws to your advantage.